In Part 1 of this article, the authors analysed the main drawbacks of the existing tax treaty dispute resolution process and considered the fundamental features of the main types of disruptive technology, keeping in mind how they could improve this process.
In this part, the authors make some specific suggestions as to how the analysed technologies can be used to improve the mutual agreement procedure (MAP) and supplementary solutions. This will include the use of video conferencing to cut costs and speed up resolution (section 2); electronic filing and checking of the MAP request with respect to documentation requirements (section 3); automatic notification as regards the deadline before arbitration is triggered and automatic forwarding of the request and any supplementary information to the other competent authority(ies); automatic notification of the taxpayer of each material step taken in the resolution of the case (without providing access to secure data); communication and exchange of information between competent authorities via secure electronic means in real time; and information storage in secure shared-data platforms (i.e. controlled access) allowing access to competent authorities and even to the arbitral panel, where required (section 3); the use of data analytics to cluster cases by type, allowing for easier inventory management, and to generate risk profiles that could help in both the prevention of MAP cases and the speedier resolution thereof (section 4); the use of artificial intelligence to review past cases, thereby allowing easier assignment to case workers, depending on their schedule, and thus, easier and more timely solutions based on precedents (section 5); and the use of blockchain to validate transactions and information and to remove the need for trust, thus allowing for an easier and quicker resolution, especially in multilateral cases (section 6).
Finally, the authors’ proposal posits that due to communication requirements, costs and security considerations, the implementation of technology solutions requires a global, coordinated approach, which should be spearheaded and managed by international organizations such as the OECD and the UN. The implementation could be completed in several stages and be subject to peer reviews.Intertax